The EU is preparing emergency import restrictions on China-made HVs and PHVs, and a provisional plan for an annual import quota of 350,000 vehicles has been reported. The restrictions are expected to take effect in early December and remain in place for 4 years, with the quota expanding by 6% annually.
Although the EU and China have not formally reached an agreement on curbing trade in HVs and PHVs, the European Commission has reportedly indicated its intention to introduce emergency import restrictions, or safeguard measures. Following talks in Beijing, the parties referred to a common understanding on limiting exports, and the timing is expected to be determined by the implementing rules to be set out going forward.
According to reports, the provisional import quota will be 350,000 vehicles per year, with plans to keep imports below half of the 800,000 vehicles expected to be imported in 2026. The restrictions are expected to take effect in early December and remain in place for 4 years, with the quota expanding at an annual rate of 6%.
Safeguard measures are temporary measures designed to limit damage to an industry caused by a surge in imports, regardless of the country of origin. Provisional application is generally limited to 200 days, while definitive measures may remain in place for up to 4 years. The application method in this case will be decided after the implementing rules have been confirmed.
For Japanese manufacturers, the measures could affect the supply conditions and competitive environment for imported vehicles in Europe, but they will not immediately affect prices or delivery times in Japan. The formal rules still need to be reviewed.
Going forward, confirming the effective date, covered vehicles, quotas by country of origin and conditions for exceeding the quotas under the EU's formal rules will be key to assessing the impact on Japanese companies.